The U.S. government reported on Thursday that its count of Americans filing claims for jobless benefits dropped to a 14-year low last week, falling by 23,000 to 264,000. Separately, U.S. industrial production rose 1.0 percent in September, versus expectations of 0.4 percent.

Earlier in the week, investors had flocked to so-called "safe haven" bonds as stock markets plunged across the board and as weaker-than-expected data out of the U.S. increased expectations that the Fed could reassess when it raises interest rates. Wednesday, the 10-year yield tumbled to 1.85 percent.

The latest data could reaffirm expectations that the central bank will not delay a hike in interest rates expected mid-2015.